<PAGE>

                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

(Mark One)

|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                  For the quarterly period ended June 30, 2006
                For the quarterly period ended September 30, 2006
                For the quarterly period ended December 31, 2006

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

             For the transition period from ________ to ___________

                         Commission file number: 0-32395


                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7

         California                                                33-0761517
(State or other jurisdiction of                                (I.R.S. Employer
 incorporation or organization)                              Identification No.)


                     17782 Sky Park Circle, Irvine, CA 92614
                   ( Address of principle executive offices )

                                 (714) 622-5565
                               (Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes [_] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [_] Accelerated filer [_]

Non-accelerated filer [X] Smaller reporting company [_]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [_] No [X]



<PAGE>

                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                  For the quarterly period ended June 30, 2006
                For the quarterly period ended September 30, 2006
                For the quarterly period ended December 31, 2006



PART I. FINANCIAL INFORMATION

  Item 1. Financial Statements

  Balance Sheets
     As of June 30, 2006, September 30, 2006, December 31, 2006
     and March 31, 2006........................................................4

  Statements of Operations
     For the Three Months Ended June 30, 2006 and 2005.........................5
     For the Three and Six Months Ended September 30, 2006 and 2005............6
     For the Three and Nine Months Ended December 31, 2006 and 2005............7

  Statements of Partners' Equity (Deficit)
     For the Three Months Ended June 30, 2006 .................................8
     For the Six Months Ended September 30, 2006 ..............................8
     For the Nine Months Ended December 31, 2006 ..............................8

  Statements of Cash Flows
     For the Three Months Ended June 30, 2006 and 2005.........................9
     For the Six Months Ended September 30, 2006 and 2005.....................10
     For the Nine Months Ended December 31, 2006 and 2005.....................11

  Notes to Financial Statements...............................................12

  Item 2. Management's Discussion and Analysis of Financial
     Condition and Results of Operations......................................23

  Item 3. Quantitative and Qualitative Disclosures About Market Risk..........26

  Item 4. Controls and Procedures ............................................26

PART II. OTHER INFORMATION

  Item 1. Legal Proceedings...................................................27

  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.........27

  Item 3. Defaults Upon Senior Securities.....................................27

  Item 4. Submission of Matters to a Vote of Security Holders.................27

  Item 5. Other Information...................................................27

  Item 6. Exhibits............................................................27

  Signatures..................................................................28


                                       3
<PAGE>
<TABLE>
<S>       <C>

                                     WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                                           (A California Limited Partnership)

                                                     BALANCE SHEETS
                                                       (UNAUDITED)

                                                                           SEPTEMBER 30,   DECEMBER 31,
                                                          JUNE 30, 2006       2006            2006        MARCH 31, 2006
                                                           ------------    ------------    ------------    ------------
ASSETS

Cash                                                       $    509,997    $    533,161    $    476,994    $    530,499
Investments in Local Limited Partnerships, net (Note 2)       7,792,858       6,519,034       6,494,504       9,403,686
Due from affiliates (Note 5)                                     78,807          78,807          78,807          78,807
                                                           ------------    ------------    ------------    ------------
       Total Assets                                        $  8,381,662    $  7,131,002    $  7,050,305    $ 10,012,992
                                                           ============    ============    ============    ============


LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

Liabilities:
  Due to Local Limited Partnerships                        $     12,081    $     12,081    $     12,081    $     12,081
  Accrued Expenses                                                5,500           5,500           5,500           5,500
  Accrued fees and expenses due to
    General Partner and affiliates (Note 3)                     102,172         102,402         101,978          94,161
                                                           ------------    ------------    ------------    ------------
       Total Liabilities                                   $    119,753    $    119,983    $    119,559    $    111,742
                                                           ============    ============    ============    ============

Partners' equity (deficit):
  General Partner                                                (9,740)        (10,991)        (11,072)         (8,101)
  Limited Partners (25,000 Partnership Units authorized;
    18,850 Partnership Units issued and outstanding)          8,271,649       7,022,010       6,941,818       9,909,351
                                                           ------------    ------------    ------------    ------------


       Total Partners' Equity                                 8,261,909       7,011,019       6,930,746       9,901,250
                                                           ------------    ------------    ------------    ------------

       Total Liabilities and Partners' Equity              $  8,381,662    $  7,131,002    $  7,050,305    $ 10,012,992
                                                           ============    ============    ============    ============


                                     See accompanying notes to financial statements

                                                            4


<PAGE>

                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                            STATEMENTS OF OPERATIONS
                FOR THE THREE MONTHS ENDED JUNE 30, 2006 AND 2005
                                   (UNAUDITED)


                                                      2006              2005
                                                  -----------       -----------
                                                  THREE MONTHS      THREE MONTHS
                                                  -----------       -----------

Reporting fees                                    $     2,500       $     1,850
                                                  -----------       -----------

Operating expenses:
  Amortization (Note 2)                                13,505            13,505
  Asset management fees (Note 3)                       14,614            14,614
  Impairment loss (Note 2)                            623,012            89,669
  Legal and accounting fees                             2,042                --
  Write off of advances to Local
     Limited Partnerships (Note 4)                     13,073                --
  Other                                                 4,897             1,504
                                                  -----------       -----------


    Total operating expenses                          671,143           119,292
                                                  -----------       -----------

Loss from operations                                 (668,643)         (117,442)

Equity in losses of Local
 Limited Partnerships (Note 2)                       (974,224)         (207,772)

Interest income                                         3,526             2,995
                                                  -----------       -----------

Net loss                                          $(1,639,341)      $  (322,219)
                                                  ===========       ===========

Net loss allocated to:
  General Partner                                 $    (1,639)      $      (322)
                                                  ===========       ===========

  Limited Partners                                $(1,637,702)      $  (321,897)
                                                  ===========       ===========

Net loss per
  Partnership  Unit                               $       (87)      $       (17)
                                                  ===========       ===========

Outstanding weighted
  Partnership  Units                                   18,850            18,850
                                                  ===========       ===========



                 See accompanying notes to financial statements

                                        5

<PAGE>

                        WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                              (A California Limited Partnership)

                                   STATEMENTS OF OPERATIONS
                           FOR THE THREE MONTHS AND SIX MONTHS ENDED
                                  SEPTEMBER 30, 2006 AND 2005
                                          (UNAUDITED)


                                               2006                          2005
                                     --------------------------    --------------------------
                                        THREE          SIX           THREE           SIX
                                        MONTHS        MONTHS         MONTHS         MONTHS
                                     -----------    -----------    -----------    -----------

Reporting fees                       $    12,500    $    15,000    $     4,500    $     6,350
                                     -----------    -----------    -----------    -----------

Operating expenses:
  Amortization (Note 2)                   10,180         23,685         13,505         27,010
  Asset management fees (Note 3)          14,614         29,228         14,614         29,228
  Impairment loss (Note 2)                    --        623,012             --         89,669
  Legal and accounting fees                2,831          4,873            198            198
  Write off of advances to Local
     Limited Partnerships (Note 4)            --         13,073         31,477         31,477
  Other                                    1,720          6,617          4,849          6,353
                                     -----------    -----------    -----------    -----------

    Total operating expenses              29,345        700,488         64,643        183,935
                                     -----------    -----------    -----------    -----------

Loss  from operations                    (16,845)      (685,488)       (60,143)      (177,585)

Equity in losses of Local
 Limited Partnerships (Note 2)        (1,237,540)    (2,211,764)      (207,762)      (415,534)

Interest income                            3,495          7,021          2,869          5,864
                                     -----------    -----------    -----------    -----------
Net loss                             $(1,250,890)   $(2,890,231)   $  (265,036)   $  (587,255)
                                     ===========    ===========    ===========    ===========

Net loss allocated to:

  General Partner                    $    (1,251)   $    (2,890)   $      (265)   $      (587)
                                     ===========    ===========    ===========    ===========


  Limited Partners                   $(1,249,639)   $(2,887,341)   $  (264,771)   $  (586,668)
                                     ===========    ===========    ===========    ===========

Net loss per

  Partnership Unit                   $       (66)   $      (153)   $       (14)   $       (31)
                                     ===========    ===========    ===========    ===========

Outstanding weighted
  Partnership Units                       18,850         18,850         18,850         18,850
                                     ===========    ===========    ===========    ===========


                        See accompanying notes to financial statements

                                               6

<PAGE>

                        WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                              (A California Limited Partnership)

                                   STATEMENTS OF OPERATIONS
             FOR THE THREE MONTHS AND NINE MONTHS ENDED DECEMBER 31, 2006 AND 2005
                                          (UNAUDITED)


                                               2006                          2005
                                     --------------------------    --------------------------
                                        THREE          NINE          THREE           NINE
                                       MONTHS         MONTHS         MONTHS         MONTHS
                                     -----------    -----------    -----------    -----------

Reporting fees                       $        --    $    15,000    $        --    $     6,350
                                     -----------    -----------    -----------    -----------

Operating expenses:
  Amortization (Note 2)                    9,809         33,494         13,505         40,515
  Asset management fees (Note 3)          14,614         43,842         14,614         43,842
  Impairment loss (Note 2)                    --        623,012             --         89,669
  Legal and accounting fees                  108          4,981          5,000          5,198
  Write off of advances to Local
     Limited Partnerships (Note 4)        17,199         30,272         60,394         91,871
  Other                                    1,259          7,876            741          7,094
                                     -----------    -----------    -----------    -----------

    Total operating expenses              42,989        743,477         94,254        278,189
                                     -----------    -----------    -----------    -----------

Loss from operations                     (42,989)      (728,477)       (94,254)      (271,839)

Equity in losses of Local
 Limited Partnerships (Note 2)           (40,825)    (2,252,589)      (207,762)      (623,296)

Interest income                            3,541         10,562          3,485          9,349
                                     -----------    -----------    -----------    -----------



Net loss                             $   (80,273)   $(2,970,504)   $  (298,531)   $  (885,786)
                                     ===========    ===========    ===========    ===========

Net loss allocated to:


  General Partner                    $       (80)   $    (2,971)   $      (299)   $      (886)
                                     ===========    ===========    ===========    ===========



  Limited Partners                   $   (80,193)   $(2,967,533)   $  (298,232)   $  (884,900)
                                     ===========    ===========    ===========    ===========

Net loss per


  Partnerships Units                 $        (4)   $      (157)   $       (16)   $       (47)
                                     ===========    ===========    ===========    ===========

Outstanding weighted
  Partnership Units                       18,850         18,850         18,850         18,850
                                     ===========    ===========    ===========    ===========


                        See accompanying notes to financial statements

                                               7

<PAGE>

                        WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                              (A California Limited Partnership)

                                STATEMENTS OF PARTNERS' EQUITY
        FOR THE THREE MONTHS ENDED JUNE 30, 2006, SIX MONTHS ENDED SEPTEMBER 30, 2006
                           AND NINE MONTHS ENDED DECEMBER 31, 2006
                                         (UNAUDITED)



                           FOR THE THREE MONTHS ENDED JUNE 30, 2006
                                                     GENERAL       LIMITED
                                                     PARTNER       PARTNERS        TOTAL
                                                   -----------    -----------    -----------

Partners' equity (deficit) at March 31, 2006       $    (8,101)   $ 9,909,351    $ 9,901,250

Net loss                                                (1,639)    (1,637,702)    (1,639,341)
                                                   -----------    -----------    -----------

Partners' equity (deficit) at June 30, 2006        $    (9,740)   $ 8,271,649    $ 8,261,909
                                                   ===========    ===========    ===========



                         FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006
                                                     GENERAL        LIMITED
                                                     PARTNER        PARTNERS        TOTAL
                                                   -----------    -----------    -----------

Partners' equity (deficit) at March 31, 2006       $    (8,101)   $ 9,909,351    $ 9,901,250

Net loss                                                (2,890)    (2,887,341)    (2,890,231)
                                                   -----------    -----------    -----------

Partners' equity (deficit) at September 30, 2006   $   (10,991)   $ 7,022,010    $ 7,011,019
                                                   ===========    ===========    ===========



                         FOR THE NINE MONTHS ENDED DECEMBER 31, 2006
                                                     GENERAL        LIMITED
                                                     PARTNER        PARTNERS        TOTAL
                                                   -----------    -----------    -----------

Partners' equity (deficit) at March 31, 2006      $    (8,101)   $ 9,909,351    $ 9,901,250

Net loss                                               (2,971)    (2,967,533)    (2,970,504)
                                                   -----------    -----------    -----------

Partners' equity (deficit) at December 31, 2006   $   (11,072)   $ 6,941,818    $ 6,930,746
                                                  ===========    ===========    ===========




                        See accompanying notes to financial statements

                                              8

<PAGE>

                         WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                               (A California Limited Partnership)

                                    STATEMENTS OF CASH FLOWS
                       FOR THE THREE MONTHS ENDED JUNE 30, 2006 AND 2005
                                          (UNAUDITED)

                                                                       2006            2005
                                                                    -----------    -----------
Cash flows from operating activities:
  Net loss                                                          $(1,639,341)   $  (322,219)
    Adjustments to reconcile net loss to net
      cash used in operating activities:
        Amortization                                                     13,505         13,505
        Impairment loss                                                 623,012         89,669
        Equity in losses of Local Limited Partnerships                  974,224        207,772
        Advances made to a Local Limited  Partnership                   (13,073)            --
        Write off of advances made to Local Limited Partnerships         13,073             --
        Change in accrued  fees and expenses due to
           General Partner and affiliates                                 8,011        (14,690)
                                                                    -----------    -----------
        Net cash used in operating activities                           (20,589)       (25,963)
                                                                    -----------    -----------

Cash Flows provided by (used in) investing activities:
        Capital contributions paid to Local  Limited Partnerships            --        (49,550)
        Distributions received from (reimbursed to) Local Limited
            Partnerships                                                     87         (1,850)
                                                                    -----------    -----------
Net cash provided by (used in) investing activities                          87        (51,400)
                                                                    -----------    -----------

Net decrease in cash                                                    (20,502)       (77,363)

Cash, beginning of period                                               530,499        774,720
                                                                    -----------    -----------

Cash, end of period                                                 $   509,997    $   697,357
                                                                    ===========    ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   INFORMATION:

   Taxes paid                                                       $        --    $        --
                                                                    ===========    ===========



                         See accompanying notes to financial statements

                                               9


<PAGE>

                         WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                               (A California Limited Partnership)

                                    STATEMENTS OF CASH FLOWS
                      FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
                                          (UNAUDITED)

                                                                       2006           2005
                                                                    -----------    -----------
Cash flows from operating activities:
  Net loss                                                          $(2,890,231)   $  (587,255)
    Adjustments to reconcile net loss to net
      cash used in operating activities:
        Amortization                                                     23,685         27,010
        Impairment loss                                                 623,012         89,669
        Equity in losses of Local Limited Partnerships                2,211,764        415,534
        Advances made to Local Limited Partnerships                     (13,073)       (31,477)
        Write off of advances made to Local Limited Partnerships         13,073         31,477
        Change in accrued  fees and expenses due to
           General Partner and affiliates                                 8,241         (7,293)
                                                                    -----------    -----------
        Net cash used in operating activities                           (23,529)       (62,335)
                                                                    -----------    -----------

Cash flows provided by (used in) investing activities:
        Capital contributions paid to Local Limited Partnerships             --        (49,550)
        Distributions received from (reimbursed to) Local Limited
             Partnerships                                                26,191           (596)
                                                                    -----------    -----------
Net cash provided by (used in) inventing activities                      26,191        (50,146)
                                                                    -----------    -----------
                                                                          2,662       (112,481)
Net increase (decrease) in cash

Cash, beginning of period                                               530,499        774,720
                                                                    -----------    -----------

Cash, end of period                                                 $   533,161    $   662,239
                                                                    ===========    ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   INFORMATION:

   Taxes paid                                                       $        --    $        --
                                                                    ===========    ===========


                         See accompanying notes to financial statements

                                               10

<PAGE>


                        WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                              (A California Limited Partnership)

                                   STATEMENTS OF CASH FLOWS
                     FOR THE NINE MONTHS ENDED DECEMBER 31, 2006 AND 2005
                                          (UNAUDITED)

                                                                      2006            2005
                                                                   -----------    -----------
Cash flows from operating activities:
  Net loss                                                         $(2,970,504)   $  (885,786)
    Adjustments to reconcile net loss to net
      cash used in operating activities:
        Amortization                                                    33,494         40,515
        Impairment loss                                                623,012         89,669
        Equity in losses of Local Limited Partnerships               2,252,589        623,296
        Advances made to Local Limited Partnerships                    (30,272)       (91,871)
        Write off of advances made to Local Limited Partnerships        30,272         91,871
        Repayment of insurance proceeds                                     --        (20,839)
        Change in accrued  fees and expenses due to
           General Partner and affiliates                                7,817         (9,640)
                                                                   -----------    -----------
        Net cash used in operating activities                          (53,592)      (162,785)
                                                                   -----------    -----------
Cash Flows provided by (used in) investing activities:
      Capital contributions paid to Local Limited Partnerships              --        (49,550)
      Distributions received from (reimbursed to) Local Limited
          Partnerships                                                      87           (596)
                                                                   -----------    -----------
Net cash provided by (used in) investing activities                         87        (50,146)
                                                                   -----------    -----------

Net decrease in cash                                                   (53,505)      (212,931)

Cash, beginning of period                                              530,499        774,720
                                                                   -----------    -----------

Cash, end of period                                                $   476,994    $   561,789
                                                                   ===========    ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   INFORMATION:

   Taxes paid                                                      $        --    $        --
                                                                   ===========    ===========


                        See accompanying notes to financial statements

                                              11
</TABLE>

<PAGE>


                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------

General
-------

The accompanying condensed unaudited financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information and with the instructions to Form 10-Q
for quarterly reports under Section 13 or 15(d) of the Securities Exchange Act
of 1934. Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United States of
America for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three months
ended June 30, 2006, six months ended September 30, 2006 and nine months ended
December 31, 2006 are not necessarily indicative of the results that may be
expected for the fiscal year ending March 31, 2007. For further information,
refer to the financial statements and footnotes thereto included in the
Partnership's annual report on Form 10-K for the fiscal year ended March 31,
2006.

Organization
------------

WNC Housing Tax Credit Fund VI, L.P., Series 7, a California Limited Partnership
(the "Partnership") was formed under the laws of the State of California on June
16, 1997 and commenced operations on September 3, 1999. The Partnership was
formed to invest primarily in other limited partnerships or limited liability
companies ("Local Limited Partnerships") which own and operate multi-family
housing complexes ("Housing Complexes") that are eligible for Federal low-income
housing tax credits ("Low Income Housing Tax Credits"). The local general
partners (the "Local General Partners") of each Local Limited Partnership retain
responsibility for maintaining, operating and managing the Housing Complexes.
Each Local Limited Partnership is governed by its agreement of limited
partnership (the "Local Limited Partnership Agreement").

The general partner of the Partnership is WNC & Associates, Inc. ("Associates"
or the "General Partner"). The chairman and president of Associates own
substantially all of the outstanding stock of Associates. The business of the
Partnership is conducted primarily through the General Partner, as the
Partnership has no employees of its own.

The Partnership shall continue in full force and effect until December 31, 2060,
unless terminated prior to that date, pursuant to the partnership agreement or
law.

The financial statements include only activity relating to the business of the
Partnership, and do not give effect to any assets that the partners may have
outside of their interests in the Partnership, or to any obligations, including
income taxes, of the partners.

The Partnership Agreement authorized the sale of up to 25,000 units of limited
partnership interest ("Partnership Units") at $1,000 per Partnership Unit. The
offering of Partnership Units has concluded and 18,850 Partnership Units,
representing subscriptions in the amount of $18,828,790, net of dealer discounts
of $21,210 had been accepted. The General Partner has a .1% interest in
operating profits and losses, taxable income and losses, cash available for
distribution from the Partnership and Low Income Housing Tax Credits of the
Partnership. The investors (the "Limited Partners") in the Partnership will be
allocated the remaining 99.9% of these items in proportion to their respective
investments.

The proceeds from the disposition of any of the Housing Complexes will be used
first to pay debts and other obligations per the respective Local Limited
Partnership Agreement. Any remaining proceeds will then be paid to the
Partnership. The sale of a Housing Complex may be subject to other restrictions
and obligations. Accordingly, there can be no assurance that a Local Limited
Partnership will be able to sell its Housing Complex. Even if it does so, there
can be no assurance that any significant amounts of cash will be distributed to
the Partnership. Should such distributions occur, the Limited Partners will be
entitled to receive distributions from the proceeds remaining after payment of
Partnership obligations and funding reserves, equal to their capital
contributions and their return on investment (as defined in the Partnership


                                       12
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
--------------------------------------------------------------

Agreement). The General Partner would then be entitles to receive proceeds equal
to their capital contributions from the remainder. Any additional sale or
refinancing proceeds will be distributed 90% to the Limited Partners (in
proportion to their respective investments) and 10% to the General Partner.

Risks and Uncertainties
-----------------------

An investment in the Partnership and the Partnership's investments in Local
Limited Partnerships and their Housing Complexes are subject to risks. These
risks may impact the tax benefits of an investment in the Partnership, and the
amount of proceeds available for distribution to the Limited Partners, if any,
on liquidation of the Partnership's investments. Some of those risks include the
following:

The Low Income Housing Tax Credits rules are extremely complicated.
Noncompliance with these rules results in the loss of future Low Income Housing
Tax Credits and the fractional recapture of Low Income Housing Tax Credits
already taken. In most cases the annual amount of Low Income Housing Tax Credits
that an individual can use is limited to the tax liability due on the person's
last $25,000 of taxable income. The Local Limited Partnerships may be unable to
sell the Housing Complexes at a price which would result in the Partnership
realizing cash distributions or proceeds from the transaction. Accordingly, the
Partnership may be unable to distribute any cash to its limited partners. Low
Income Housing Tax Credits may be the only benefit from an investment in the
Partnership.

The Partnership has invested in a limited number of Local Limited Partnerships.
Such limited diversity means that the results of operation of each single
Housing Complex will have a greater impact on the Partnership. With limited
diversity, poor performance of one Housing Complex could impair the
Partnership's ability to satisfy its investment objectives. Each Housing Complex
is subject to mortgage indebtedness. If a Local Limited Partnership failed to
pay its mortgage, it could lose its Housing Complex in foreclosure. If
foreclosure were to occur during the first 15 years, the loss of any remaining
future Low Income Housing Tax Credits, a fractional recapture of prior Low
Income Housing Tax Credits, and a loss of the Partnership's investment in the
Housing Complex would occur. The Partnership is a limited partner or a
non-managing member of each Local Limited Partnership. Accordingly, the
Partnership will have very limited rights with respect to management of the
Local Limited Partnerships. The Partnership will rely totally on the Local
General Partners. Neither the Partnership's investments in Local Limited
Partnerships, nor the Local Limited Partnerships' investments in Housing
Complexes, are readily marketable. To the extent the Housing Complexes receive
government financing or operating subsidies, they may be subject to one or more
of the following risks: difficulties in obtaining tenants for the Housing
Complexes; difficulties in obtaining rent increases; limitations on cash
distributions; limitations on sales or refinancing of Housing Complexes;
limitations on transfers of interests in Local Limited Partnerships; limitations
on removal of Local General Partners; limitations on subsidy programs; and
possible changes in applicable regulations. Uninsured casualties could result in
loss of property and Low Income Housing Tax Credits and recapture of Low Income
Housing Tax Credits previously taken. The value of real estate is subject to
risks from fluctuating economic conditions, including employment rates,
inflation, tax, environmental, land use and zoning policies, supply and demand
of similar properties, and neighborhood conditions, among others.

The ability of Limited Partners to claim tax losses from the Partnership is
limited. The IRS may audit the Partnership or a Local Limited Partnership and
challenge the tax treatment of tax items. The amount of Low Income Housing Tax
Credits and tax losses allocable to the limited partners could be reduced if the
IRS were successful in such a challenge. The alternative minimum tax could
reduce tax benefits from an investment in the Partnership. Changes in tax laws
could also impact the tax benefits from an investment in the Partnership and/or
the value of the Housing Complexes.


                                       13
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
--------------------------------------------------------------

No trading market for the Partnership Units exists or is expected to develop.
Limited Partners may be unable to sell their Partnership Units except at a
discount and should consider their Partnership Units to be a long-term
investment. Individual Limited Partners will have no recourse if they disagree
with actions authorized by a vote of the majority of Limited Partners.

Exit Strategy
-------------

The IRS compliance period for Low-Income Housing Tax Credit properties is
generally 15 years from occupancy following construction or rehabilitation
completion. Associates was one of the first in the industry to offer syndicated
investments using the Low Income Housing Tax Credits. The initial programs are
completing their compliance periods. As of December 31, 2006, none of the Local
Limited Partnerships had completed the 15 year compliance period.

With that in mind, the Partnership is continuing to review the Housing
Complexes, with special emphasis on the more mature Housing Complexes such as
any that have satisfied the IRS compliance requirements. The review considers
many factors, including extended use requirements (such as those due to mortgage
restrictions or state compliance agreements), the condition of the Housing
Complexes, and the tax consequences to the Limited Partners from the sale of the
Housing Complexes.

Upon identifying those Housing Complexes with the highest potential for a
successful sale, refinancing or syndication, the Partnership expects to proceed
with efforts to liquidate them. The objective is to maximize the Limited
Partners' return wherever possible and, ultimately, to wind down the
Partnership. Local Limited Partnership interests may be disposed of any time by
the General Partner in its discretion. While liquidation of the Housing
Complexes continues to be evaluated, the dissolution of the Partnership was not
imminent as of December 31, 2006. As of December 31, 2006 no Housing Complexes
had been sold or selected for disposition.

Method of Accounting for Investments in Local Limited Partnerships
------------------------------------------------------------------

The Partnership accounts for its investments in Local Limited Partnerships using
the equity method of accounting, whereby the Partnership adjusts its investment
balance for its share of the Local Limited Partnerships' results of operations
and for any contributions made and distributions received. The Partnership
reviews the carrying amount of an individual investment in a Local Limited
Partnership for possible impairment whenever events or changes in circumstances
indicate that the carrying amount of such investment may not be recoverable.
Recoverability of such investment is measured by the estimated value derived by
management, generally consisting of the sum of the remaining future Low Income
Housing Tax Credits estimated to be allocable to the Partnership and the
estimated residual value to the Partnership. If an investment is considered to
be impaired, the Partnership reduces the carrying value of its investment in any
such Local Limited Partnership. The accounting policies of the Local Limited
Partnerships, generally, are expected to be consistent with those of the
Partnership. Costs


                                       14
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
--------------------------------------------------------------

incurred by the Partnership in acquiring the investments are capitalized as part
of the investment and are being amortized over 30 years (see Note 2).

"Equity in losses of Local Limited Partnerships" for each of the periods ended
December 31, 2006, September 30, 2006, June 30, 2006 and 2005, respectively have
been recorded by the Partnership. Management's estimate for the three, six and
nine-month period is based on either actual unaudited results reported by the
Local Limited Partnerships or historical trends in the operations of the Local
Limited Partnerships. In subsequent annual financial statements, upon receiving
the actual annual results reported by the Local Limited Partnerships, management
reverses its prior estimate and records the actual results reported by the Local
Limited Partnerships. Equity in losses from the Local Limited Partnerships
allocated to the Partnership are not recognized to the extent that the
investment balance would be adjusted below zero. As soon as the investment
balance reaches zero, the related costs of acquiring the investment are impaired
(see Note 2). If the Local Limited Partnerships reported net income in future
years, the Partnership will resume applying the equity method only after its
share of such net income equals the share of net losses not recognized during
the period(s) the equity method was suspended (see Note 2).

The Partnership does not consolidate the accounts and activities of the Local
Limited Partnerships, which are considered Variable Interest Entities under
Financial Accounting Standards Board Interpretation No. 46-Revised,
"Consolidation of Variable Interest Entities", because the Partnership is not
considered the primary beneficiary. The Partnership's balance in investments in
Local Limited Partnerships, plus the risk of recapture of tax credits previously
recognized on such investments, represents the maximum exposure to loss in
connection with such investments. The Partnership's exposure to loss on the
Local Limited Partnerships is mitigated by the condition and financial
performance of the underlying Housing Complexes as well as the strength of the
Local General Partners and their guarantees against Low Income Housing Tax
Credit recapture.

Distributions received by the Partnership are accounted for as a reduction of
the investment balance. Distributions received after the investment has reached
zero are recognized as distribution income. As of September 30, 2006 and
December 31, 2006, one investment account in Local Limited Partnerships had
reached a zero balance.

Use of Estimates
----------------

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could materially differ from those
estimates.

Cash and Cash Equivalents
-------------------------

The Partnership considers all highly liquid investments with original maturities
of three months or less when purchased to be cash equivalents. For all periods
presented, the Partnership had no cash equivalents.

Reporting Comprehensive Income
------------------------------

The STATEMENT OF FINANCIAL ACCOUNTING STANDARDS ("SFAS") NO. 130, REPORTING
COMPREHENSIVE INCOME established standards for the reporting and display of
comprehensive income (loss) and its components in a full set of general-purpose
financial statements. The Partnership had no items of other comprehensive income
for all periods presented, as defined by SFAS No. 130.



                                       15
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
--------------------------------------------------------------

Concentration of Credit Risk
----------------------------

For all periods presented, the Partnership maintained cash balances at certain
financial institutions in excess of the federally insured maximum. The
Partnership believes it is not exposed to any significant financial risk on
cash.

Income Taxes
------------

No provision for income taxes has been recorded in the financial statements as
any liability and or benefits for income taxes flows to the partners of the
Partnership and is their obligation and/or benefit. For income tax purposes the
Partnership reports on a calendar year basis.

Net Loss Per Partnership Unit
-----------------------------

Net loss per Partnership Unit is calculated pursuant to Statement of Financial
Accounting Standards No. 128, Earnings Per Share. Net loss per Partnership Unit
includes no dilution and is computed by dividing loss allocated to Limited
Partners by the weighted average number of Partnership Units outstanding during
the period. Calculation of diluted net loss per Partnership Unit is not
required.

Amortization
------------

Acquisition fees and costs are being amortized over 30 years using the
straight-line method. Amortization expense for each of the three months ended
June 30, 2006 and 2005 was $13,505. For the six months ended September 30, 2006
and 2005 amortization expense was $23,685 and $27,010, respectively, and for the
nine months ended December 31, 2006 and 2005 it was $33,494 and $40,515,
respectively.

Impairment
----------

A loss in value from Local Limited Partnership other than a temporary decline is
recorded as an impairment loss. Impairment is measured by comparing the
investment carrying amount to the sum of the total of the remaining Low Income
Housing Tax Credits and the estimated residual value.

Revenue Recognition
-------------------

The Partnership is entitled to receive reporting fees from the Local Limited
Partnerships. The intent of the reporting fees is to offset (in part)
administrative costs incurred by the Partnership in corresponding with the Local
Limited Partnerships. Due to the uncertainty of the collection of these fees,
the Partnership recognizes reporting fees as collections are made.

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS
--------------------------------------------------

As of the periods presented, the Partnership had acquired limited partnership
interests in thirteen Local Limited Partnerships, each of which owns one Housing
Complex consisting of an aggregate of 476 apartment units. The respective Local
General Partners of the Local Limited Partnerships manage the day to day
operations of the entities. Significant Local Limited Partnership business
decisions, as defined, require approval from the Partnership. The Partnership,
as a Limited Partner, is generally entitled to 99.8%, as specified in the Local
Limited Partnership agreements, of the operating profits and losses, taxable
income and losses, and tax credits of the Local Limited Partnerships.


                                       16
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, CONTINUED
-------------------------------------------------------------

A loss in value from a Local Limited Partnership other than a temporary decline
is recorded as an impairment loss. Impairment is measured by comparing the
investment carrying amount to the sum of the total amount of the remaining Low
Income Housing Tax Credits allocated to the Partnership and the estimated
residual value of the investment. Accordingly, the Partnership recorded an
impairment loss of $623,012 and $89,669, during the three months ended June 30,
2006 and 2005, respectively. There were no additional impairment losses for the
periods ended September 30, 2006 and 2005 and December 31, 2006 and 2005.

The following is a summary of the equity method activity of the investments in
Local Limited Partnerships for the periods presented below:

<TABLE>
<S>       <S>
                                                     FOR THE THREE   FOR THE YEAR
                                                     MONTHS ENDED       ENDED
                                                    JUNE 30, 2006    MARCH 31, 2006
                                                     ------------    ------------
Investments per balance sheet, beginning of period   $  9,403,686    $ 11,122,724
Impairment loss                                          (623,012)        (89,669)
Equity in losses of Local Limited Partnerships           (974,224)     (1,577,954)
Distributions (received from) reimbursed to Local
    Limited Partnerships                                      (87)          2,605
Amortization of capitalized acquisition fees and
    costs                                                (13,505)        (54,020)
                                                     ------------    ------------
Investments per balance sheet, end of period         $  7,792,858    $  9,403,686
                                                     ============    ============

                                                     FOR THE SIX     FOR THE YEAR
                                                     MONTHS ENDED       ENDED
                                                     SEPTEMBER 30,    MARCH 31,
                                                         2006            2006
                                                     ------------    ------------
Investments per balance sheet, beginning of period   $  9,403,686    $ 11,122,724
Impairment loss                                          (623,012)        (89,669)
Equity in losses of Local Limited Partnerships         (2,211,764)     (1,577,954)
Distributions (received from) reimbursed to Local
    Limited Partnerships                                  (26,191)          2,605
Amortization of capitalized acquisition fees and
costs                                                     (23,685)        (54,020)
                                                     ------------    ------------
Investments per balance sheet, end of period         $  6,519,034    $  9,403,686
                                                     ============    ============

                                                     FOR THE NINE    FOR THE YEAR
                                                     MONTHS ENDED       ENDED
                                                     DECEMBER 31,     MARCH 31,
                                                         2006            2006
                                                     ------------    ------------
Investments per balance sheet, beginning of period   $  9,403,686    $ 11,122,724
Impairment loss                                          (623,012)        (89,669)
Equity in losses of Local Limited Partnerships         (2,252,589)     (1,577,954)
Distributions (received from) reimbursed to Local
    Limited Partnerships                                      (87)          2,605
Amortization of capitalized acquisition fees and
costs                                                     (33,494)        (54,020)
                                                     ------------    ------------
Investments per balance sheet, end of period         $  6,494,504    $  9,403,686
                                                     ============    ============


                                       17
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, CONTINUED
-------------------------------------------------------------

                                                                FOR THE THREE    FOR THE YEAR
                                                                MONTHS ENDED         ENDED
                                                                JUNE 30, 2006   MARCH 31, 2006
                                                                -------------   -------------
Investments in Local Limited Partnerships, net                  $   6,499,275   $   8,096,598
Acquisition fees and costs, net of accumulated amortization
  of $402,917 and $389,412                                          1,293,583       1,307,088
                                                                -------------   -------------
Investments per balance sheet, end of period                    $   7,792,858   $   9,403,686
                                                                =============   =============

                                                                FOR THE SIX      FOR THE YEAR
                                                                MONTHS ENDED        ENDED
                                                                SEPTEMBER 30,     MARCH 31,
                                                                    2006            2006
                                                                -------------   -------------
Investments in Local Limited Partnerships, net                  $   5,586,596   $   8,096,598
Acquisition fees and costs, net of accumulated amortization
  of $764,062 and $389,412                                            932,438       1,307,088
                                                                -------------   -------------
Investments per balance sheet, end of period                    $   6,519,034   $   9,403,686
                                                                =============   =============

                                                                FOR THE NINE    FOR THE YEAR
                                                                MONTHS ENDED        ENDED
                                                                DECEMBER 31,      MARCH 31,
                                                                    2006             2006
                                                                -------------   -------------
Investments in Local Limited Partnerships, net                  $   5,571,875   $   8,096,598
Acquisition fees and costs, net of accumulated amortization
  of $773,871 and $389,412                                            922,629       1,307,088
                                                                -------------   -------------
Investments per balance sheet, end of period                    $   6,494,504   $   9,403,686
                                                                =============   =============

</TABLE>


                                       18


<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, CONTINUED
-------------------------------------------------------------

Selected financial information for the three months ended June 30, 2006 and 2005
from the unaudited combined condensed financial statements of the Local Limited
Partnerships in which the Partnership has invested is as follows:

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
                                                      2006              2005
                                                   -----------      -----------
Revenues                                           $   820,000      $   758,000
                                                   -----------      -----------
Expenses:
  Interest expense                                     230,000          205,000
  Depreciation and amortization                        272,000          278,000
  Impairment expense                                   837,000               --
  Operating expenses                                   455,000          484,000
                                                   -----------      -----------
    Total expenses                                   1,794,000          967,000
                                                   -----------      -----------

Net loss                                           $  (974,000)     $  (209,000)
                                                   ===========      ===========
Net loss allocable to the Partnership              $  (974,000)     $  (208,000)
                                                   ===========      ===========
Net loss recorded by the Partnership               $  (974,000)     $  (208,000)
                                                   ===========      ===========

Selected financial information for the six months ended September 30, 2006 and
2005 from the unaudited combined condensed financial statements of the Local
Limited Partnerships in which the Partnership has invested is as follows:

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
                                                      2006              2005
                                                   -----------      -----------
Revenues                                           $ 1,641,000      $ 1,517,000
                                                   -----------      -----------
Expenses:
  Interest expense                                     460,000          409,000
  Depreciation and amortization                        544,000          555,000
  Impairment expense                                 1,674,000               --
  Operating expenses                                   910,000          968,000
                                                   -----------      -----------
Total expenses                                       3,588,000        1,932,000
                                                   -----------      -----------

Net loss                                           $(1,947,000)     $  (415,000)
                                                   ===========      ===========
Net loss allocable to the Partnership              $(1,947,000)     $  (416,000)
                                                   ===========      ===========
Net loss recorded by the Partnership               $(2,212,000)     $  (416,000)
                                                   ===========      ===========

Selected financial information for the nine months ended December 31, 2006 and
2005 from the unaudited combined condensed financial statements of the Local
Limited Partnerships in which the Partnership has invested is as follows:


                                       19
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS, CONTINUED
-------------------------------------------------------------

                   COMBINED CONDENSED STATEMENTS OF OPERATIONS
                                                      2006             2005
                                                   -----------      -----------
Revenues                                           $ 2,460,000      $ 2,275,000
                                                   -----------      -----------
Expenses:
  Interest expense                                     690,000          614,000
  Depreciation and amortization                        816,000          833,000
  Impairment expense                                 2,511,000               --
  Operating expenses                                 1,365,000        1,452,000
                                                   -----------      -----------
Total expenses                                       5,382,000        2,899,000
                                                   -----------      -----------

Net loss                                           $(2,922,000)     $  (624,000)
                                                   ===========      ===========

Net loss allocable to the Partnership              $(2,921,000)     $  (623,000)
                                                   ===========      ===========
Net loss recorded by the Partnership               $(2,253,000)     $  (623,000)
                                                   ===========      ===========

Certain Local Limited Partnerships incurred operating losses and/or have working
capital deficiencies. In the event these Local Limited Partnerships continue to
incur significant operating losses, additional capital contributions by the
Partnership and/or the Local General Partners may be required to sustain the
operations of such Local Limited Partnerships. If additional capital
contributions are not made when they are required, the Partnership's investment
in certain of such Local Limited Partnerships could be impaired, and the loss
and recapture of the related tax credits could occur.

NOTE 3 - RELATED PARTY TRANSACTIONS
-----------------------------------

Under the terms of the Partnership Agreement, the Partnership has paid or is
obligated to the General Partner or its affiliates for the following fees:

      (a)   Acquisition fees of up to 7% of the gross proceeds from the sale of
            Partnership Units as compensation for services rendered in
            connection with the acquisition of Local Limited Partnerships. At
            the end of all periods presented, the Partnership incurred
            acquisition fees of $1,319,500. Accumulated amortization of these
            capitalized costs was $396,871, $387,062, $265,818 and $254,821 as
            of December 31, 2006, September 30, 2006, June 30, 2006 and March
            31, 2006, respectively.

      (b)   Reimbursement of costs incurred by the General Partner or an
            affiliate of Associates in connection with the acquisition of Local
            Limited Partnerships. These reimbursements have not exceeded 2% of
            the gross proceeds. As of the end of all periods presented, the
            Partnership incurred acquisition costs of $377,000, which have been
            included in investments in Local Limited Partnerships. Accumulated
            amortization was $377,000, $377,000, $137,099, and $134,591 as of
            December 31, 2006, September 30, 2006, June 30, 2006 and March 31,
            2006, respectively.


                                       20
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 3 - RELATED PARTY TRANSACTIONS, CONTINUED
----------------------------------------------

      (c)   An annual asset management fee not to exceed 0.2% of the Invested
            Assets of the Partnership, as defined. "Invested Assets" means the
            sum of the Partnership's Investment in Local Limited Partnerships
            and the Partnership's allocable share of the amount of the mortgage
            loans on and other debts related to, the Housing Complexes owned by
            such Local Limited Partnerships. Asset management fees of $14,614
            were incurred during each of the three months ended June 30, 2006
            and 2005. For each of the six months ended September 30, 2006 and
            2005, the Partnership incurred asset management fees of $29,228.
            Management fees of $43,842 were incurred during each of the nine
            months ended December 31, 2006 and 2005. The Partnership paid the
            General Partner or its affiliates $10,042 and $20,084 of those fees
            during the three months ended June 30, 2006 and 2005, respectively.
            During the six months ended September 30, 2006 and 2005 the
            Partnership paid $20,084 and $30,126, respectively, of those fees.
            During the nine months ended December 31, 2006 and 2005 the
            Partnership paid $31,334 and $40,168, respectively, of those fees.

      (d)   A subordinated disposition fee in an amount equal to 1% of the sales
            price of real estate sold. Payment of this fee is subordinated to
            the limited partners receiving a return on investment (as defined in
            the Partnership Agreement) and is payable only if the General
            Partner or its affiliates render services in the sales effort. No
            such fee was incurred for all the periods presented.

      (e)   The Partnership reimburses the General Partner or its affiliates for
            operating expenses incurred on behalf of the Partnership. Operating
            expense reimbursements were approximately $0 and $10,725 during the
            three months ended June 30, 2006 and 2005, respectively. For the six
            months ended September 30, 2006 and 2005 the Partnership reimbursed
            operating expenses of approximately $8,892 and $12,942,
            respectively. For the nine months ended December 31, 2006 and 2005,
            operating expense reimbursements were $14,042 and $23,007,
            respectively.

The accrued fees and expenses due to General Partner and affiliates consisted of
the following at:

<TABLE>
<S>            <C>
                                  JUNE 30,    SEPTEMBER 30, DECEMBER 31,   MARCH 31,
                                    2006         2006          2006          2006
                                -----------   -----------   -----------   -----------

Accrued asset management fees   $    93,114   $    97,686   $   101,050   $    88,542
Payable to Local Limited
    Partnership                          64            64            64            64
Expenses paid by the General
    Partners or an
    affiliates on
    behalf of the Partnership         8,994         4,652           864         5,555
                                -----------   -----------   -----------   -----------
Total                           $   102,172   $   102,402   $   101,978   $    94,161
                                ===========   ===========   ===========   ===========
</TABLE>


NOTE 4 - PAYABLES TO LOCAL LIMITED PARTNERSHIPS
-----------------------------------------------

Payables to Local Limited Partnerships represent amounts which are due at
various times based on conditions specified in the Local Limited Partnership
agreements. These contributions are payable in installments and are generally
due upon the Local Limited Partnerships achieving certain operating and
development benchmarks (generally within two years of the Partnership's initial
investment). As of all periods presented, $12,081 of capital contributions
remain payable.


                                       21
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 5 - DUE FROM AFFILIATES
----------------------------

One Local Limited Partnership, Lake Village Apartments, L.P., ("Lake Village")
(see Note 6 below) has experienced operational issues and as such the
Partnership has made advances which totaled $177,172 as of December 31, 2006.
During the three months ended June 30, 2006 advances of $13,073 were made.
During the nine months ended December 31, 2006 advances of $30,272 were made
which totals the advances to $177,172 all of which had been reserved against
since it was determined that they were uncollectible.

At December 31, September 30, June 30, and March 31, 2006, loans receivable of
$78,807, $78,807, $78,807, and $78,807, respectively, were due from Local
Limited Partnerships in which the Partnership owns a 99.98% interest. At
December 31, September 30, June 30, and March 31, 2006, one of the loans in the
amount of $78,807, $78,807, $78,807 and $78,807, respectively, is in the form of
a 20 year promissory note, is subordinate to the first mortgage on the
respective property, due in full on August 30, 2022 and earns interest at a rate
of 8% per annum. That note is due from one Local Limited Partnership, ACN
Southern Hills II, L.P. ("Southern Hills"), in which the Partnership owns a
99.98% interest. Southern Hills had a construction loan payable aggregating
approximately $1,100,000 as of December 31, 2001, which was due in March 2002
and was not repaid at that time. In September 2002 the $1.1 million loan was
refinanced. The General Partner paid off $557,000 of the loan with investment
money received from the Partnership. The remaining balance was converted to a
$463,000 first mortgage with a bank and a $80,000 promissory note due in 20
years to the Partnership. The Partnerships loan is subordinate to the first
mortgage and requires payments to be made monthly and at the end of the year
from available cash flow. The Partnership expects this loan to be collectible in
full. No payments have been made since October 2004 due to the fact that the
mortgage note had covenants that the DCR could not be below 1.20 and if payments
on this note were made the DCR would have been below 1.20. The original first
mortgage note has since been refinanced and the management company was changed.
With these two factors in consideration the Local Limited Partnership is cash
flowing and is expected to make a payment on the promissory note during the
Partnership's third quarter.

NOTE 6 - COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS
---------------------------------------------------------

During the year ended March 31, 2002, WNC, the General Partner of the
Partnership was advised that Lake Village Apartments, a Local Limited
Partnership, was in default of certain covenants relating to certain loans
advanced for the construction of the apartments. The defaults were primarily
caused by the general contractor failing to complete the construction of the
development according to the terms of the Lake Village Apartment's loans. As a
result of the foregoing, on June 30, 2002, the General Partner of Lake Village
Apartments was replaced by an entity wholly owned by two minority shareholders
and officers of Associates and a workout agreement was executed with the lender
(the "Agreement"), whereby the General Partner of Lake Village Apartments was
replaced by the aforementioned entity. Pursuant to the terms of the Agreement,
the new general partner would contribute additional equity to the Local Limited
Partnership if necessary, a new general contractor would complete the
construction of the development, and the lender, upon satisfaction of certain
conditions of the Agreement as defined, would continue to fund the completion of
the construction and other costs. In addition, pursuant to the Agreement, the
Partnership Agreement was amended, and the Partnership committed and paid
additional capital contributions of $855,628 as a result of obtaining additional
Low Income Housing Tax Credits. Construction of the development was completed as
of June 2002, at which time all construction loans converted to permanent
financing.

Beginning in November 2005 the Lake Village Apartments are being managed by the
Henry County Housing Development Group, Inc. (HCHD). HCHD is the local housing
authority serving Kewanee, Illinois. HCHD currently manages numerous apartment
units in Kewanee and brings substantial knowledge of property management and
knowledge of the local community. HCHD also administers the tenant housing
choice voucher program and may be able to provide Lake Village occupants with
rental assistance payments to help defer the cost of their rent thereby making
it more attractive for a prospective tenant to remain at Lake Village. As of
June 2008, the Partnership has advanced Lake Village approximately $184,504 all
of whose have been fully reserved and written off as bad debt as management has
deemed the collectability to be questionable. These advances were used to fund
certain recurring and nonrecurring operating expenses consisting primarily of
property taxes and insurance.


                                       22
<PAGE>
                 WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
                       (A California Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED
      FOR THE QUARTERLY PERIODS ENDED JUNE 30, 2006, SEPTEMBER 30, 2006 AND
                                DECEMBER 31, 2006
                                   (UNAUDITED)


NOTE 6 - COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS, CONTINUED
--------------------------------------------------------------------

Beginning in April 2006, Lake Village Apartments did not make its regularly
schedule principal and interest payment to the mortgage holder, Illinois
Development Housing Authority (IHDA) and began negotiations with IHDA at that
time to restructure the debt. These negotiations have continued through April
2008 and during that period, no principal and interest payments have been made.
IHDA has expressed that they have no interest in restructuring the mortgage and
have proposed that Lake Village Apartments pay $1,250,000 to IHDA in full and
final satisfaction of their existing first and second mortgages. The General
Partner is pursuing a sale of the Lake Village Apartments to meet IHDA's request
in order to avoid a foreclosure and recapture event to the investors. An
appraisal received in April 2008 indicates a value of current market value of
$480,000. If the General Partner is unable to consummate a sale of this asset,
IHDA could institute a foreclosure procedure and the Housing Complex could be
lost, thereby creating a recapture event for the previous Low Income Housing Tax
Credits claimed to date. Although the General Partner is actively pursuing a
sale, there is no assurance this will occur.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

FORWARD LOOKING STATEMENTS

With the exception of the discussion regarding historical information, this
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and other discussions elsewhere in this Form 10-Q contain forward
looking statements. Such statements are based on current expectations subject to
uncertainties and other factors which may involve known and unknown risks that
could cause actual results of operations to differ materially from those
projected or implied. Further, certain forward-looking statements are based upon
assumptions about future events which may not prove to be accurate.

Risks and uncertainties inherent in forward looking statements include, but are
not limited to, our future cash flows and ability to obtain sufficient
financing, level of operating expenses, conditions in the Low Income Housing Tax
Credit property market and the economy in general, as well as legal proceedings.
Historical results are not necessarily indicative of the operating results for
any future period.

Subsequent written and oral forward looking statements attributable to the
Partnership or persons acting on its behalf are expressly qualified in their
entirety by cautionary statements in this Form 10-Q and in other reports filed
with the Securities and Exchange Commission. The following discussion should be
read in conjunction with the Financial Statements and the Notes thereto included
elsewhere in this filing.

The following discussion and analysis compares the results of operations for the
three months ended June 30, 2006 and 2005, the three and six months ended
September 30, 2006 and 2005, and the three and nine months ended December 31,
2006 and 2005, and should be read in conjunction with the combined condensed
financial statements and accompanying notes included within this report.

FINANCIAL CONDITION

The Partnership's assets at June 30, 2006 consisted primarily of $510,000 in
cash, aggregate investments in the thirteen Local Limited Partnerships of
$7,793,000 and due from affiliates of $79,000. Liabilities at June 30, 2006
consisted of $102,000 of accrued annual asset management fees and reimbursement
for expenses paid by the General Partner and/or its affiliates, due to Local
Limited Partnerships of $12,000 and accrued expenses of $5,500.

                                       23
<PAGE>

The Partnership's assets at September 30, 2006 consisted primarily of $533,000
in cash, aggregate investments in the thirteen Local Limited Partnerships of
$6,519,000 and due from affiliates of $79,000. Liabilities at September 30, 2006
consisted of $102,000 of accrued annual asset management fees and reimbursement
for expenses paid by the General Partner and/or its affiliates, due to Local
Limited Partnerships of $12,000 and accrued expenses of $5,500.

The Partnership's assets at December 31, 2006 consisted primarily of $477,000 in
cash, aggregate investments in the thirteen Local Limited Partnerships of
$6,495,000 and due from affiliates of $79,000. Liabilities at December 31, 2006
consisted of $102,000 of accrued annual asset management fees and reimbursement
for expenses paid by the General Partner and/or its affiliates, due to Local
Limited Partnerships of $12,000 and accrued expenses of $5,500.

RESULTS OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THREE MONTHS ENDED JUNE 30, 2005.
The Partnership's net loss for the three months ended June 30, 2006 was
$(1,639,000), reflecting an increase of approximately $(1,317,000) from the net
loss of $(322,000) for the three months ended June 30, 2005. The increase was
due to the increase in impairment loss of $(533,000). The impairment loss can
vary each year depending on the annual decrease in tax credits allocated to the
fund and the current estimated residual value of the investments compared to the
current carrying value of each of the investments. There was a increase of
$(13,000) in write off of advances to Local Limited Partnerships for the three
months ended June 30, 2006 due to an advance being made during the three months
ended June 30, 2006 and reserved for in the same quarter compared to $0 advanced
and reserved in the three months ended June 30, 2005. A Local Limited
Partnership was experiencing some operational issues and the Partnership
advanced the funds that were necessary. There was also an increase of equity in
losses of Local Limited Partnerships of $(766,000) to $(974,000) for the three
months ended June 30, 2006 from $(208,000) for the three months ended June 30,
2005. That increase is primarily due to an impairment expense from one Local
Limited Partnership, Lake Village Apartment L.P.. The audited financial
statements for this Local Limited Partnership for the year ended December 31,
2006 recorded approximately $3,200,000 in impairment expense. It was determined
by its independent accounting firm that the building was considered impaired by
that amount. Therefore, a portion of the expense was recognized by the
Partnership in the form of equity in losses from Local Limited Partnerships for
the three months ended June 30, 2006 compared to no Local Limited Partnerships
impairment expense for the three months ended June 30, 2005. The accounting and
legal fees increased by $(2,000) for the three months ended June 30, 2006
compared to the three months ended June 30, 2005, the accounting expense
difference is the timing of when the work is performed. The other operating
expenses also increased by $(3,000).

THREE MONTHS ENDED SEPTEMBER 30, 2006 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2005 The Partnership's net loss for the three months ended
September 30, 2006 was $(1,251,000), reflecting an increase of approximately
$(986,000) from the net loss of $(265,000) for the three months ended September
30, 2005. There was an increase of equity in losses of Local Limited
Partnerships of $(1,030,000) to $(1,238,000) for the three months ended
September 30, 2006 from $(208,000) for the three months ended September 30,
2005. That increase is primarily due to an impairment expense from one Local
Limited Partnership, Lake Village. The audited financial statements for the year
ended December 31, 2006 this Local Limited Partnership recorded approximately
$3,200,000 in impairment expense. It was determined by its independent
accounting firm that the building was considered impaired by that amount.
Therefore, a portion of the expense was recognized by the Partnership in the
form of equity in losses from Local Limited Partnerships for the three months
ended September 30, 2006 compared to no Local Limited Partnerships impairment
expense for the three months ended September 30, 2005. The amortization expense
decreased by $3,000 due to the fact that the impairment expense from Lake
Village brought the investment balance in Lake Village to zero and as such the
acquisition costs and fees associated with that Lake Village were written down
to zero therefore reducing amortization expense beginning in the three months
ended September 30, 2006. There was a decrease of $31,000 in write off of
advances to Local Limited Partnerships for the three months ended September 30,
2006 due to an advance being made during the three months ended September 30,
2005 and reserved for in the same quarter compared to $0 advanced and reserved
in the three months ended September 30, 2006. A Local Limited Partnership was
experiencing some operational issues and the Partnership advanced the funds that
were necessary. The reporting fee income increased by $8,000 for the three
months ended September 30, 2006 compared to the three months ended September 30,
2005 due to the fact that Local Limited Partnerships pay the reporting fee to
the Partnership when the Local Limited Partnership's cash flow will allow for
the payment. The accounting and legal fees increased by $(2,000) for the three
months ended September 30, 2006 compared to the three months ended September 30,
2005, as discussed above with the June comparison the accounting expense
difference is the timing of when the work is performed. The other operating
expenses decreased by $3,000.


                                       24
<PAGE>

SIX MONTHS ENDED SEPTEMBER 30, 2006 COMPARED TO THE SIX MONTHS ENDED SEPTEMBER
30, 2005 The Partnership's net loss for the six months ended September 30, 2006
was $(2,890,000), reflecting an increase of approximately $(2,303,000) from the
net loss of $(587,000) for the six months ended September 30, 2005. The increase
in net loss was due to an increase in impairment loss of $(533,000). The
impairment loss can vary each year depending on the annual decrease in tax
credits allocated to the fund and the current estimated residual value of the
investments compared to the current carrying value of each of the investments.
Additionally there was an increase in equity in losses of Local Limited
Partnerships of $(1,796,000) to $(2,212,000) for the six months ended September
30, 2006 from $(416,000) for the six months ended September 30, 2005. That
increase is primarily due to an impairment expense from one Local Limited
Partnership, Lake Village. The audited financial statements for the year ended
December 31, 2006 for this Local Limited Partnership had approximately
$3,200,000 in impairment expense. It was determined by its independent
accounting firm that the building was considered impaired by that amount.
Therefore, a portion of the expense was recognized by the Partnership in the
form of equity in losses from Local Limited Partnerships for the six months
ended September 30, 2006 compared to no Local Limited Partnerships impairment
expense for the six months ended September 30, 2005. The amortization expense
decreased by $3,000 due to the fact that the impairment expense from Lake
Village brought the investment balance in Lake Village to zero and as such the
acquisition costs and fees associated with that Local Limited Partnerships were
written down to zero therefore reducing amortization expense beginning in the
six months ended September 30, 2006. There was a decrease of $18,000 in write
off of advances to Local Limited Partnerhips for the six months ended September
30, 2006 due to an advance of $31,000 being made during the six months ended
September 30, 2005 and reserved for in the same quarter compared to $13,000
advanced and reserved in the six months ended September 30, 2006. A Local
Limited Partnership was experiencing some operational issues and the Partnership
advanced the funds that were necessary. The reporting fee income increased by
$9,000 for the six months ended September 30, 2006 compared to the six months
ended September 30, 2005 due to the fact that Local Limited Partnerships pay the
reporting fee to the Partnership when the Local Limited Partnership's cash flow
will allow for the payment. Additionally the accounting and legal fees increased
by $(5,000) for the six months ended September 30, 2006 compared to the six
months ended September 30, 2005 due to the timing of when the accounting work is
performed. Interest income also increased by $1,000.

THREE MONTHS ENDED DECEMBER 31, 2006 COMPARED TO THE THREE MONTHS ENDED DECEMBER
31, 2005 The Partnership's net loss for the three months ended December 31, 2006
was $(80,000), reflecting a decrease of approximately $219,000 from the net loss
of $(299,000) for the three months ended December 31, 2005. The accounting and
legal fees decreased by $5,000 for the three months ended December 31, 2006
compared to the three months ended December 31, 2005, the accounting expense
difference is a timing issue. There was a decrease of equity in losses of Local
Limited Partnerships of $167,000 to $(41,000) for the three months ended
December 31, 2006 from $(208,000) for the three months ended December 31, 2005.
That decrease is due to the investment balance of one Local Limited Partnership
reaching zero as of December 31, 2006 and since the Partnership's liability with
respect to its investments is limited, losses in excess of investment are not
recognized. The amortization expense decreased by $3,000 due to the investment
balance that reached zero and as the acquisition costs and fees associated with
that Local Limited Partnerships were written down to zero therefore reducing
amortization expense. There was a decrease of $43,000 in bad debt expense for
the three months ended December 31, 2006 due to a $(60,000) advance being made
during the three months ended December 31, 2005 and reserved for in the same
quarter compared to a $(17,000) advance which was reserved for in the three
months ended December 31, 2006. A Local Limited Partnership was experiencing
some operational issues and the Partnership advanced the funds that were
necessary.


                                       25
<PAGE>

NINE MONTHS ENDED DECEMBER 31, 2006 COMPARED TO NINE MONTHS ENDED DECEMBER 31,
2005 The Partnership's net loss for the nine months ended December 31, 2006 was
$(2,971,000), reflecting an increase of approximately $(2,085,000) from the net
loss of $(886,000) for the nine months ended December 31, 2005. There was an
increase of equity in losses of Local Limited Partnerships by $(1,630,000) to
$(2,253,000) for the nine months ended December 31, 2006 from $(623,000) for the
nine months ended December 31, 2005. That increase is primarily due to an
impairment expense from one Local Limited Partnership, Lake Village. The audited
financial statements for the year ended December 31, 2006 for this Local Limited
Partnership had approximately $3,200,000 in impairment expense. It was
determined by its independent accounting firm that the building was considered
impaired by that amount. Therefore, a portion of the expense was recognized by
the Partnership in the form of equity in losses from Local Limited Partnerships
for the nine months ended December 31, 2006 compared to no lower tier impairment
expense for the nine months ended December 31, 2005. The amortization decreased
by $7,000 due to the acquisition costs and fees associated with the investment
balance that reached zero were written down to zero therefore reducing
amortization expense. Also contributing to the increase in net loss was the
$(533,000) increase in impairment loss. The impairment loss can vary each year
depending on the annual decrease in tax credits allocated to the fund and the
current estimated residual value of the investments compared to the current
carrying value of each of the investments. There was also a decrease of $62,000
in write off of advances to Local Limited Partnerships for the nine months ended
December 31, 2006 due to $92,000 advance being made during the nine months ended
December 31, 2005 and reserved for in the same nine month period compared to
$30,000 advanced and reserved for the nine months ended December 31, 2006. The
reporting fee income increased by $9,000 for the nine months ended December 31,
2006 compared to the nine months ended December 31, 2005 due to the fact that
Local Limited Partnerships pay the reporting fee to the Partnership when the
Local Limited Partnership's cash flow will allow for the payment.

CAPITAL RESOURCES AND LIQUIDITY

THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THREE MONTHS ENDED JUNE 30, 2005
Net cash used during the three months ended June 30, 2006 was $(21,000),
compared to net cash used during the three months ended June 30, 2005 of
$(77,000), reflecting a change of $56,000 primarily due to $(50,000) paid to
Local Limited Partnerships for capital contributions for the three months ended
June 30, 2005 compared to no capital contributions being paid for the three
months ended June 30, 2006. There was also $13,000 advanced to a Local Limited
Partnership that was experiencing operational issues during the three months
ended June 30, 2006 compared to no advances having to be made during the three
months ended June 30, 2005. During the three months June 30, 2006 the
Partnership reimbursed $0 to the General Partner or its affiliates for expenses
that were paid on its behalf compared to the $11,000 that was reimbursed during
the three months ended June 30, 2005. Additionally during the three months ended
June 30, 2006 the Partnership paid $10,000 in asset management fees compared to
$20,000 for the three months ended June 30, 2005.

SIX MONTHS ENDED SEPTEMBER 30, 2006 COMPARED TO SIX MONTHS ENDED SEPTEMBER 30,
2005 Net cash provided during the six months ended September 30, 2006 was $3,000
compared to net cash used during the six months ended September 30, 2005 of
$(112,000), reflecting a change of $115,000 due primarily to $(50,000) paid to
Local Limited Partnerships for capital contributions for the six months ended
September 30, 2005 compared to no capital contributions being paid for the six
months ended September 30, 2006. During the six months ended September 30, 2005
the Partnership advanced $31,000 to a Local Limited Partnership that was
experiencing operational issues compared to $13,000 in advances being made
during the six months ended September 30, 2005. During the six months ended
September 30, 2006 the Partnership received $26,000 more in distributions. The
distribution was paid in error and was returned to the Local Limited Partnership
in the following quarter. During the six months September 30, 2006 the
Partnership reimbursed $9,000 to the General Partner or its affiliates for
expenses that were paid on its behalf compared to the $13,000 that was
reimbursed during the six months ended September 30, 2005. Additionally during
the six months ended September 30, 2006 the Partnership paid $20,000 in asset
management fees compared to $30,000 for the six months ended September 30, 2005.
There was also an additional $9,000 in reporting fees collected during the six
months ended September 30, 2006 compared to the six months ended September 30,
2005.

                                       26
<PAGE>

NINE MONTHS ENDED DECEMBER 31, 2006 COMPARED TO NINE MONTHS ENDED DECEMBER 31,
2005 Net cash used during the nine months ended December 31, 2006 was $(54,000),
compared to net cash used during the nine months ended December 31, 2005 of
$(213,000), reflecting a change of $159,000 due in large part to $(50,000) paid
to Local Limited Partnerships for capital contributions for the nine months
ended December 31, 2005 compared to no capital contributions being paid for the
nine months ended December 31, 2006. During the nine months ended December 31,
2005 the Partnership advanced $92,000 to a Local Limited Partnership that was
experiencing operational issues compared to $30,000 advances during the nine
months ended December 31, 2006. During the nine months ended December 31, 2005
the Partnership reimbursed $21,000 of insurance proceeds to one Local Limited
Partnership. During the nine months December 31, 2006 the Partnership reimbursed
$14,000 to the General Partner or its affiliates for expenses that were paid on
its behalf compared to the $23,000 that was reimbursed during the nine months
ended December 31, 2005. Additionally during the nine months ended December 31,
2006 the Partnership paid $31,000 in asset management fees compared to $40,000
for the nine months ended December 31, 2005. There was also an additional $9,000
in reporting fees collected during the nine months ended December 31, 2006
compared to the nine months ended December 31, 2005.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      NOT APPLICABLE

ITEM 4.  CONTROLS AND PROCEDURES

      As of the end of the period covered by this report, the Partnership's
      General Partner, under the supervision and with the participation of the
      Chief Executive Officer and Chief Financial Officer of Associates carried
      out an evaluation of the effectiveness of the Fund's "disclosure controls
      and procedures" as defined in Securities Exchange Act of 1934 Rule 13a-15
      and 15d-15. Based on that evaluation, the Chief Executive Officer and
      Chief Financial Officer have concluded that as of the end of the period
      covered by this report, the Partnership's disclosure controls and
      procedures were adequate and effective in timely alerting them to material
      information relating to the Partnership required to be included in the
      Partnership's periodic SEC filings.

      Changes in internal controls. There were no changes in the Partnership's
      internal control over financial reporting that occurred during the
      quarters ended June 30, 2006, September 30, 2006 and December 31, 2006
      that materially affected, or are reasonably likely to materially affect,
      the Partnership's internal control over financial reporting.


PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         NONE

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

         NONE

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         NONE


                                       27
<PAGE>

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         NONE

ITEM 5.  OTHER INFORMATION

         NONE

ITEM 6.   EXHIBITS

31.1  Certification of the Principal Executive Officer pursuant to Rule 13a-14
      and 15d-14, as adopted pursuant to section 302 of the Sarbanes-Oxley Act
      of 2002. (filed herewith)


31.2  Certification of the Principal Financial Officer pursuant to Rule 13a-14
      and 15d-14, as adopted pursuant to section 302 of the Sarbanes-Oxley Act
      of 2002. (filed herewith)

32.1  Section 1350 Certification of the Chief Executive Officer. (filed
      herewith)

32.2  Section 1350 Certification of the Chief Financial Officer. (filed
      herewith)



                                       28


<PAGE>





Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7


By:  WNC & ASSOCIATES, INC.                 General Partner





By: /s/ Wilfred N. Cooper, Jr.
    --------------------------
Wilfred N. Cooper, Jr.
President and Chief Executive Officer of WNC & Associates, Inc.

Date: July 24, 2008





By: /s/ Thomas J. Riha
    ------------------
Thomas J. Riha
Senior Vice-President - Chief Financial Officer of WNC & Associates, Inc.

Date: July 24, 2008



                                       29